SHANGHAI, Nov. 8 -- Western Mining Co.(601168.SH) said Tuesday its controlling shareholder, Western Mining Group Co., has bought an 80% stake in a medium-sized zinc and lead mine in Sichuan province for CNY2.2 billion ($330.43 million).

The deal is pending approval from the provincial regulator, the Sichuan branch of the State-owned Assets Supervision and Administration Commission. The asset - the Huidong Mine - is currently owned by the provincial government of Sichuan.

The mine, which has been in operation for 52 years, has an annual capacity to produce 40,000 metric tons of zinc and 65,000 tons of sulphur.

As of June 30, 2009, the mine had estimated mineral reserves of 11.56 million tons, including 1.14 million tons of zinc, 88,000 tons of lead, 556 tons of silver, 15,674 tons of cadmium, 151 tons of gallium, 173 tons of germanium, and 617,460 tons of sulphur, the statement said.

Western Mining shares were up 6.2% at CNY20.5 following the announcement.